Asiamet Resources (AIM: ARS) isn’t playing small ball with its latest fundraising. The company has raised $3.3 million, bringing in support from its heavyweight Indonesian shareholder PT Delta Dunia Makmur (DOID), who threw in a solid $3 million. Not to be left behind, management—including Chairman Tony Manini and Chinese-Australian property and software magnate Bruce Sheng have also backed the raise, contributing a total $295,000 to the pot.
But here’s the kicker: two fingers up to AIM market discounts, retail investors now have the chance to jump in, too, on the same terms as the big players. Through the Bookbuild platform, Asiamet is giving retail a rare opportunity to invest at 0.77p per share—no second-class deals here. Much needed as the junior end of the market.
The Big Push: Why This Matters
This isn’t just another raise to pay the bills. The funds are being deployed for the final optimisation of the BKM Copper Project—a project with some serious potential. With a new capital cost profile targeting $50-80 million in reductions, Asiamet is positioning BKM as a leaner, higher-margin project that will be a much easier sell to financiers.
It’s been a tough journey, no doubt about that. But the company is now looking at a much more manageable upfront capital cost, a capex profile trimmed down from the original $235 million. The target now? A tidy $160-180 million. That’s the kind of number that’s easier to get behind, especially when copper prices are expected to remain strong.
Retail Investors Get a Real Shot
What’s rare here is the chance for retail to buy in a bit more size than probably available on market, not just alongside management but also with a major backer like DOID. With $3 million already in from DOID and management skin in the game, retail investors have the same terms, a level playing field.
Let’s be clear: having conducted its last few raises privately, Asiamet is giving retail investors the chance to join the company at a pivotal moment. And they’re doing it with no discount, no underhand deals—just a straightforward path to a potentially lucrative copper play as the company pushes toward project financing in Q1 2025.
Looking Ahead: Key Catalysts
What’s going to drive the share price? Well, there’s plenty of news flow expected over the next two quarters. Optimisation work on BKM is expected to be done by the end of this quarter, and by Q1 2025, Asiamet should be moving into serious discussions with lenders. Copper production by 2027 is the target, and the company is confident they can get there with financing in place – most likely maximum debt gearing.
Speaking of gearing, Asiamet has been preparing for its financing for a while. The copper market fundamentals remain strong, and as the world shifts to electrification, energy transition and AI and all that cleve stuff, copper is only going to become more important. With capex cuts, financing lined up, and strong demand, it’s hard to overlook the opportunity here.
Final Word
This isn’t just a fundraising announcement; it’s a call to action for investors. Asiamet has its ducks in a row, and now it’s inviting retail investors to join the push into what could be a very profitable stage for the company. The lately disappointing share price providing opportunity to reverse with a tight rise not frequented by spivvy discounted merchants. Don’t miss out.
Author
